Possessing unique strengths, this is how Chinese manufacturers "make a killing" at the 2024 Paris Olympics

The Paris 2024 Olympics – the biggest sporting event on the planet – is predicted to be a huge summer stage for manufacturers from China, a country often dubbed the "world's factory."

With their unique strengths, Chinese manufacturers are predicted to "win big" at the 2024 Paris Olympic Games. (Source: SCMP)

Tonight, at 1:30 AM on July 27th (Vietnam time), the whole world will turn its attention to Paris, France, to witness the most historic and spectacular event – ​​the opening of the Paris 2024 Olympic Games. Particularly noteworthy is that while most of the food at the Paris 2024 Olympics will be French, mass-produced goods from China will be everywhere, from advanced sports equipment to small souvenirs.

This year's biggest sporting event on the planet is predicted to be a huge summer stage for manufacturers from China – a country often dubbed the "world's factory".

Yan Zaixing, CEO of Sonic Composite Technology – the sole manufacturer selected to supply windsurfing equipment for the 2024 Paris Olympics – shared that his company is virtually unrivaled in terms of the quality of its new materials and manufacturing processes. This is precisely why Sonic Composite Technology is far superior to other manufacturers in the race to become the Olympic equipment supplier. "We are the only company in the world that possesses a superior industrial chain for production," Yan Zaixing confidently declared.

Concerned about rising labor costs and escalating geopolitical tensions, particularly trade competition with the US, many manufacturers have decided to relocate their operations from China to India or other Southeast Asian countries.

However, the world's second-largest economy still possesses unique strengths and considerable appeal, boasting a comprehensive and well-organized supply chain network established over decades.

Paul Tai, Regional Director at global retail solutions manufacturer and provider Mainetti Group, explains that with events of the scale of the Paris 2024 Olympic Games, there wouldn't be enough time to fulfill all the orders.

"Not many places are capable of doing that, especially in such a short time and with the required quality standards," added Paul Tai, noting the advantage of industrial clusters in China where units have the capacity to source the various materials needed for production.

Mainetti Group is currently producing souvenirs for Chinese gymnasts participating in the Olympics and supporting the Chinese sports equipment company Anta by supplying accessories such as clothing hangers for the national team.

Previously, Paul Tai's company had been a key partner of the International Olympic Committee since 2020, providing packaging products for the Tokyo 2020 and Beijing 2022 Olympic Games.

"In the future, China's manufacturing industries will move up the value chain by using more artificial intelligence (AI) or automation in their production processes," Tai noted.

According to Fan Di, Associate Professor and Deputy Dean of the Fashion and Textiles Department at Hong Kong Polytechnic University, whether in India or Southeast Asian countries, these manufacturing hubs are lagging behind China in terms of establishing globally recognized systems.

According to the French weekly news magazine L'Express , 90% of the mascots for the Paris 2024 Olympic Games are manufactured in China. Also according to the Chinese news agency Xinhua , many Olympic souvenirs, including hats, t-shirts, toys, pens, bracelets, and notebooks sold in Paris, are "made in China," with some manufacturers beginning to receive orders in the second half of last year. Other related products for the Games – from athletes' sportswear to the lounge chairs used in the Olympic Village – are all manufactured in Zhejiang province, eastern China.

Qiu Dongxiao, head of the Economics Department at Lingnan University (Hong Kong, China), commented: “Although labor costs are higher, logistics, work efficiency, and transportation in China are much better than those of its regional competitors.” He added that China’s manufacturing sector is enormous and it is difficult to find such a scale in other countries.

According to the Customs Administration in Xiamen, Fujian Province, on June 21, China exported 1,116 sets of clothing and specialized equipment for staff of the International Olympic Committee. This was also one of the largest shipments Beijing has sent to Paris.

Exports of sports-related products from manufacturers in Zhejiang province exceeded 10 billion RMB (approximately US$1.38 billion) in the first four months of 2024 alone – a nearly 25% increase year-on-year and accounting for a quarter of the country's total exports.

Data from e-commerce giant Alibaba also shows that exports of sporting goods to France surged in March, with popular items including tennis apparel, custom sportswear, training helmets, and golf bags.

“In the case of China, although it has become a world leader in many advanced manufacturing sectors, not all low-end manufacturing has shifted overseas. China still has unique competitive advantages,” said Stephen Olson, senior research fellow at the Pacific Forum and visiting lecturer and research fellow at the Yeutter Institute in Nebraska, USA.

Source: https://baoquocte.vn/so-huu-the-manh-doc-dao-day-la-cach-cac-nha-san-xuat-trung-quoc-hot-bac-tai-olympic-paris-2024-279263.html